Crown Cork & Seal surges on Q3 profit; reduces IPO

MichaelBaron

Crown Cork & Seal
CCK, +0.06%
is rising $1, or 18.5 percent, to $6.40, after the Philadelphia-based can products firm posted third-quarter earnings from continuing operations of 34 cents a share, 2 cents ahead of Wall Street's consensus estimate. Including gains from early debt extinguishment and the carryback of U.S. tax losses and charges from IPO expenses, asset sales and foreign currency devaluation, the company earned $71 million, or 45 cents a share, besting its year-ago loss of $13 million, or 10 cents a share. Sales slipped to $1.89 billion in the latest three months from $2 billion in the same period a year earlier. Crown Cork said that the pricing environment and associated margins are improving, and that industry fundamentals in its markets remain good. In addition, the company amended the registration statement for its planned initital public offering of its Constar unit, saying it plans to sell 12 million shares, its entire stake, for between $15 and $18 each. The company was planning on selling 16 million shares. Crown Cork also filed to sell up to $200 million in senior subordinated notes due 2012.

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